Asynchronous Assignment 2:

Muhammad Jalaluddin 20201-27571

Ans.1) The traditional product development process at BBA (now International Flavors and
Fragrances) involves several subset processes.

Firstly, it begins with a customer request for a specific flavor for a product. Following this, BBA's
marketing professionals and flavorists gather information about the customer's requirements and
preferences. Based on this information, BBA develops a prototype of the requested flavor. The
prototype is then tested and evaluated by the customer, who provides feedback on its taste and
suitability for the intended application. This feedback initiates a cycle of iteration, where BBA makes
necessary adjustments to the flavor prototype based on the customer's input. This iterative process
continues until a satisfactory flavor is developed and approved by the customer.

This traditional process involves multiple iterations and back-and-forth communication between BBA
and the customer, leading to a time-consuming and costly product development cycle. The need for
extensive iterations arises from the inherent difficulty in interpreting and fulfilling the customer's
nuanced and evolving needs, especially in an industry where the development of specialty flavors
requires a high degree of customization and expertise, remaining more of an art than a science.

The shift to a customer-as-innovator approach, as discussed in the case study, involves providing
customers with tools to design and develop the application-specific part of a product on their own.
This shift reduces the need for extensive iterations between the supplier and the customer, thereby
streamlining the product development process and empowering customers to play a more active
role in the creation of customized flavors

Ans.2) In the traditional product development process at BBA (now International Flavors and
Fragrances), there was a lot of waste and increased lead times in the area of advanced development
and testing. The iterative process of developing and testing flavor prototypes based on customer
feedback was time-consuming and costly, leading to increased lead times and waste in the form of
discarded prototypes that did not meet the customer's requirements.

Moreover, the traditional approach placed most of the work and responsibility of product
development on the supplier, leading to a drawn-out process of trial and error, often ping-ponging
between the manufacturer and the customer. This process was costly and time-consuming because
customer needs are often complex, subtle, and fast-changing, and customers don't fully understand
their needs until they try out prototypes to explore exactly what does and doesn't work.

The shift to a customer-as-innovator approach, as discussed in the case study, aims to reduce waste
and lead times by providing customers with tools to design and develop the application-specific part
of a product on their own. This shift reduces the need for extensive iterations between the supplier
and the customer, thereby streamlining the product development process and empowering
customers to play a more active role in the creation of customized flavors.

Ans.3) The cause of waste and increased lead times in BBA's traditional product development
process was primarily due to the extensive iterations and back-and-forth communication between
the supplier (BBA) and the customer. This process was time-consuming and costly because of the
challenges in interpreting and fulfilling the customer's nuanced and evolving needs, especially in an
industry where the development of specialty flavors requires a high degree of customization and
expertise, remaining more of an art than a science.

This understanding of BBA's traditional product development process impacts the understanding of
value chains and lean retail in several ways. Firstly, it highlights the importance of customer-centric
value chains, where the focus is on understanding and fulfilling customer needs efficiently and
effectively. In the case of BBA, the traditional approach led to inefficiencies and waste in the value
chain due to the extensive iterations and the challenges in meeting customer requirements in a
timely and cost-effective manner.

Secondly, it underscores the significance of lean principles in retail and value chains. Lean retail
emphasizes minimizing waste and maximizing value for the customer. BBA's traditional product
development process, with its multiple iterations and extended lead times, represents a non-lean
approach that can be improved through the adoption of lean principles. By empowering customers
to play a more active role in the product development process, BBA can streamline its value chain,
reduce waste, and enhance customer value.

In summary, the challenges faced by BBA in its traditional product development process provide
valuable insights into the importance of customer-centric value chains and the application of lean
principles to improve efficiency, reduce waste, and deliver greater value to customers in the retail and
product development context.